Does Private Equity Stir Up European Industries?
36 Pages Posted: 3 Jul 2015
Date Written: July 2, 2015
Private equity is subject to public debate regarding its impact on economies. While several papers have documented the effects of private equity on a firm level, the effects of private equity on an industry level is hardly addressed. This paper analyzes the influence of private equity on industry performance across twelve European countries. We find that the relative investment level of private equity positively influences the industries’ productivity, operating income, number of employees and average wage level. Causality tests show that the relative level of private equity investments causes the changes in the industries and not vice-versa.
Keywords: Private equity, industries, Europe, performance
JEL Classification: G34, L25
Suggested Citation: Suggested Citation